Diamonds, are substantially unique. Each has natural attributes such as color and clarity as well as attributes and features contributed when the diamond is cut and polished. When a diamond is cut, one factor contributing to its value is the cut weight of the stone. There are other factors relating to the nature and the grade of the cut. For example, for round cut and polished diamonds, the following factors relating to the cut contribute to the presentation of the diamond and hence its value: depth ratio (the top to bottom dimension/diameter), table ratio (the diameter of the top flat/diameter), crown angle (the angle from the girdle to the top flat), pavillion angle (the angle from the girdle to the bottom), crown height ratio (the distance from the flat to the girdle/the top to bottom dimension), girdle ratio (the width of the girdle/depth) and culet ratio (culet diameter/diameter). The girdle is the outside perimeter of stone and may be sharp defining a crisp perimeter about the stone or may be somewhat cylindrical. The culet is a flat formed at the bottom of the stone. The aforementioned factors determine whether the cut is anywhere from excellent to an evaluation if the stone should be recut. Additional factors may contribute to the overall value of the stone.
The unique nature of diamonds has frustrated any effort to develop a system or method by which remotely located sellers and buyers can deal. Typically sellers and buyers must simply develop personal contacts. A seller having an inventory of diamonds, cut or uncut, must find a willing buyer. The buyer will then examine and evaluate the diamonds (or send them to a laboratory for evaluation). If a diamond is thereafter desired by the buyer, the price must be negotiated. Experienced buyers and sellers have a fair idea of what a diamond of certain characteristics is worth. However, there is no market study or actual sales histories of like diamonds to provide more precise, up to data guidance as to a fair price to either the buyer or seller. It has been known for dealers in diamonds to refer to a "Rapport Diamond Report" which, based upon weight, color and clarity, provides a listing of an opinion as to what the current asking price is for certain cut diamonds are. The report does not reflect actual sales prices, does not represent actual offers to sell or bids to buy diamonds nor does it take into account certain factors important in evaluating diamonds.
Thus, buyers and sellers cannot be sure that the negotiated price for a diamond reflects the actual, current market value. Novice sellers and buyers may be left to the mercy of more experienced dealers. Further, novice sellers and buyers may have difficulty penetrating the existing personal contact-based market.
Still further, the absence of any real-time listing of current transactions, offers and bids regarding diamonds of specific characteristics has frustrated the efforts of occasional dealers in gems to determine a fair price. For example, pawn brokers, estate appraisers and financial institutions may need guidance in determining what the sale of a stone of certain characteristics would likely bring if sold on the market.
There is a need for a data processing system and method for listing on a world-wide basis actual offers to sell precious stones such as diamonds which takes into account the various factors effecting price, which permits buyers to make bids on specific stones, which permits buyers and sellers to adjust offers and bids to eventually enter into a sales transaction and which facilitates the handling of the aforesaid sales transactions. Such a system would permit sellers to list stones such as diamonds for sale anywhere in the world and would permit buyers anywhere in the world to bid on diamonds having certain characteristics. The beneficial result of such a system and method would be to establish a real-time, world-wide system and method for facilitating diamond transactions.